Which of the Following Statements Is FALSE

question 8

Multiple Choice

Which of the following statements is FALSE?

• A)When the CEO is also chairman of the board,the nominating letter offering a seat to a new director comes from her.This process merely serves to reinforce the sense that the outside directors owe their positions to the CEO and work for the CEO rather than for the shareholders.
• B)Over time,most of the independent directors will have been nominated by the CEO.Even though they have no business ties to the firm,they are still likely to be friends or at least acquaintances of the CEO.
• C)Researchers have found the surprisingly robust result that larger boards are associated with greater firm value and performance.
• D)The CEO can be expected to stack the board with directors who are less likely to challenge her.

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Definitions:

Distributive Bargaining

A negotiation strategy in which parties compete over the distribution of a fixed asset or resource, often resulting in a win-lose situation.

Zero-Sum

A situation in game theory and economic theory where each participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Constant-Sum

A scenario in negotiations or games where the total value distributed among participants is fixed, meaning one party's gain is another's loss.

Press Operators

Individuals who operate printing presses, machinery designed for mass-producing text and images on paper.